Housing Prices Still Climbing in the Inland Empire

BS Ranch Perspective:

Everywhere else in the planet that you see, when you want television news programs, and the like. The common story is that Home Sales are dropping, but as we see here in this story, that home sales are climbing, who do we believe? it is a tough one?

Well, I am going with the local Paper, they are more tune to the local events.

BS Ranch

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Housing prices still climbing

Michael Rappaport, Business Editor

Article Launched:11/28/2006 10:27:49 PM PST

Ifit's clear that the housing boom is over, what isn't completely clearyet is whether homeowners will see prices go sideways or slip back somein upcoming months.

Numbers released Tuesday by the California Association ofRealtors show the median price in the state at $548,680 in October2006.

That's up 2 percent from a year ago and down 1.5 percent from September, but it's hardly a serious decline.

"We'reseeing a seasonal decline in the median price characteristic of thistime of year, although the overall trend is a slight year-over-yearincrease," CAR President Colleen Badagliacco said in a release. "Pricesat the regional and county level have shown greater variability, withsome areas posting year-to-year declines while others continue toregister price gains compared with last year."

Southland home prices were up in Los Angeles County and theInland Empire, but Ventura, Orange and San Diego counties all sawdeclines from October 2005.

Regional prices in Southern California, with percentage increase or decrease from 2005:

High Desert -- $328,650 -- up 4.0

Los Angeles -- $583,160 -- up 4.6

Orange County -- $681,340 -- dn 2.9

Riverside/S. Bern.-- $402,680 -- up 2.2

San Diego -- $574,530 -- dn 4.5

Source: California Association of Realtors

Sales are down, demand still there

Home sales in California were off nearly 30 percent from October 2005, and the picture in the Inland Empire was even worse.

TheRiverside/San Bernardino metropolitan area saw 37.6 percent fewer homesales last month than in the same period a year earlier, but believe itor not, that doesn't mean people aren't buying homes.

"The demand is still there," said regional economist JackKyser. "Even though the builders have really cut back in an effort tocut inventory, the Inland Empire is still leading the state in homesales."

Three factors continue to impact the market, as economist John Husing pointed out recently.

Unsold inventory is at 7.2 months, more than double a year ago.

Foreclosures are up from historic lows, with several thousand homeowners entering the process each